Finley is set to become a free agent after posting 55 receptions and career highs in both receiving yards (767) and touchdowns (eight) this season. His agent told the Green Bay Press-Gazette the Packers would rather sign Finley to a long-term deal than use the franchise tag on him.
"We've been speaking, and they've made it clear they would like him to be back there, and Jermichael's made it clear he would like to be back there," Blake Baratz said. "Now that the season's over, there's a little more time to focus on the particulars."
The two sides had discussions throughout the season, according to the report, but haven't set a timetable in getting a deal done.
Finley, 24, played in all 16 games this season, his fourth in the NFL. He missed the last 11 games of the 2010 season with a knee injury.
Teams can designate franchise and transition tags beginning Feb. 20 and have until March 5 to tag players. The free-agency period begins March 13.